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Recording Of Satisfaction U/s 147 – SOP By CBDT


The CBDT has prescribed a Standard Operating Procedure (SOP) to be followed by AOs while issuing notices u/s 148 of the Income-tax Act, 1961 for reopening of assessments. The SOP is designed to ensure that the AO addresses issues such as ‘change of opinion’, ‘failure to disclose’ etc so as to make the reopening foolproof and immune to challenge by taxpayers. CA Vinay Kawdia has studied the SOP and suggested changes and additions thereto so as to ensure that the objectives of the CBDT are met


In view of the section 147 of the Income Tax Act [‘The Act’], if the AO has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, for the assessment year concerned. Before making the assessment, reassessment or recomputation under section 147, the AO shall serve on the assessee a notice u/s 148 in prescribed form.

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Guide To The Prohibition Of Benami Property Transactions Act

Advocate Dr. P. Daniel has conducted a systematic study of the Prohibition of Benami Property Transactions Act, 1988 as amended in 2016. Apart from referring to all the important statury provisions and judicial pronouncements on the subject, the author has answered FAQs which throw light on the precise legal consequences of the enactment


The problem of property held as Benami has been causing concern to the tax authorities for quite some time. The Select Committee on the Taxation Laws (Amendment) Bill, 1969 had also recommended that Government. should examine the existing law relating to Benami Transactions with a view to find out whether such transactions should be prohibited. Hence the Benami Transactions Prohibition Act was enacted in 1988. As there was various lacunae and shortcomings in the Act, a new Amendment Act was introduced renaming the Title as The Benami Transactions (Prohibition) Amendment Act, 2016.

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Penny Stocks: Capital Gains, Law & Practice


Advocate Paras S. Savla has explained the modus operandi used by unscrupulous taxpayers to launder their unaccounted black money with the aid of bogus capital gains from Penny Stocks. He has also explained the relevant statutory provisions and discussed all the important judgements on the point. He has, however, cautioned that all cases of capital gains from penny stocks cannot be branded by the authorities as bogus and offered advice on what precautions taxpayers should take to avoid being wrongly assessed to tax

Humans! We keep bringing new ideas and creations to simplify our lives and yet end up creating an intricate and complicated web which is anything but simple. We graduated from bartering to commerce and trading to make our lives easy and then to complicate the whole thing, we invented an abstract entity called “company” to limit our risk.

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S. 14A: Exempt Income Versus Expenses For Exempt Income

CA Jyoti Gupta has considered the question whether disallowance u/s 14A can be made in a case where exempt income is earned from stock-in-trade and strategic investments in the context of the recent judgement of the Supreme Court in Maxopp Investment Ltd vs. CIT 91 154 (SC)

As could be discerned from the heading itself, vide this article we would be discussing the provisions of Sec.14A of the Income-tax Act. The matter for discussion, is the recent decision of Hon’ble Supreme Court in case of Maxopp Investment Ltd vs. CIT [2018] 91 154 (SC).

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S. 271(1)(c) Penalty | Judgement Of Bombay High Court In Shanti Ramanand Sagar Explained

In Shanti Ramanand Sagar vs. CIT (2018) 402 ITR 245, the Bombay High Court has upheld the levy of penalty u/s 271(1)(c) for concealment of income or furnishing inaccurate particulars of income. Advocate Rahul Hakani has explained the judgement in the proper perspective and pointed out that it does not alter the prevalent legal position that no penalty can be levied in case of rejection of a bona fide legal claim

1. After the decision of the Supreme Court in UOI v. Dharmendra Textiles (2008) 306 ITR 277 (SC) , it was seen that the revenue authorities initiated penalty proceedings in an automatic fashion and also argued at different Appellate stages that penalty is to be levied the moment addition is made or confirmed. This erroneous interpretation was set at naught by the Supreme Court in Union of India vs Rajasthan Spinning & Weaving Mill (2009) 180 Taxmann 609(SC) wherein it was held as under:

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Tax Emergency – Tax Bharo Ya Jail Bharo

CA Prarthana Jalan points out that the department’s aggressive action in launching prosecution even for trivial offenses is creating panic amongst taxpayers and leading to a state of “Tax Emergency”. She advises that the department should use the weapon of prosecution sparingly and only against habitual offenders and not as a tool to terrorize taxpayers

I had heard about National Emergency, had read about Financial Emergency and am witnessing “Tax Emergency” in front of my eyes. Indeed our country is in the state of “Tax Emergency”.

As during emergencies, no law is applicable except what the government decides according to its own sweet will similarly in today’s scenario also it seems Income Tax Act, 1961 is not applicable but just one law is applicable i.e “TAX Collection TARGET”

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Finance Bill 2018: Tax Implications Of Conversion Of Stock-In-Trade Into Capital Asset

Advocate Rahul Hakani has analyzed the proposed amendments by the Finance Bill 2018 to sections 2(24), 2(42A), 28 and 49 to tax the notional gains arising on conversion of stock-in-trade into capital asset. He has explained precisely the nuances of the amendments and also identified the controversies that will arise therefrom


1 An assessee may withdraw/convert/treat his stock in trade and hold it as a capital asset if there are changes in facts and circumstances necessitating such conversion.

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Finance Bill 2018: Taxability Of Long Term Capital Gains

Advocate V. P. Gupta has explained the salient amendments proposed in the Finance Bill 2018 relating to the taxability of long-term capital gains. He has pointed out that some provisions are anomalous and may lead to prolonged litigation. He has offered suggestions on how the provisions should be reworded so as to make the law clear and unambiguous

Vide Finance Bill, 2018 the Finance Minister has proposed certain amendments in regard to scheme of taxation of long term capital gains arising on transfer of equity shares and units of mutual funds. Proposed amendments and their implications are being discussed hereunder with reference to present provisions of the Act.

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Finance Bill 2018 – Deemed Dividend and Distribution Tax

Advocate Rahul Sarda has analyzed the amendments proposed by the Finance Bill 2018 to sections 2(22), 115-O and 115-R of the Income-tax Act, 1961 with regard to the taxation of dividends and the levy of dividend distribution tax. He has explained how these amendments will widen the tax base on the pretext of ‘ease of collecting taxes’

I. Introduction

1) Since the Union Budget for the fiscal year 2012-13 presented on 16th March 2012, and all budgets thereafter, we have seen the direct tax proposals being assiduously organised into various heads. While some of these heads represent the disposition of Government’s policies such as Ease of doing business, Make in India and Swachchh Bharat, some other heads denote the transient and ad hoc nature of yearly budgetary exercise such as Rationalisation measures and Tax incentives and reliefs. But there is one head – Widening of tax base – which has figured in some form or the other in direct tax proposals for most budgets during the years 2012 till 2018.

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Finance Bill 2018 – International Tax Amendments

Advocate Sunil Moti Lala and CA Tushar Hathiramani have analyzed the amendments proposed in the Finance Bill 2018 relating to “business connection“. They have explained the precise scope of the proposed amendments and also highlighted the controversies that are likely to arise therefrom. The relevant judgements on the issue have also been cited

Vide the Finance Bill, 2018, India has yet again introduced anti-Base Erosion and Profit Shifting measures in its domestic law in line with the Action Plans formulated by the Organisation of Economic Cooperation and Development (‘OECD’). The international tax amendments brought out vide this Finance Bill seek to expand the scope of the term ‘business connection’ contained in Section 9 of the Income-tax Act, 1961 (‘the Act’) by way of

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